A financial BLOG written by a DIY investor covering Singapore blue chips, dividend stocks, financial education, corporate news, money saving tips, book reviews and my journey to financial freedom. Currently managing a personal portfolio of more than SGD $1,000,000, I aspire to have an average cash flow of minimum $10,000 per month either through realised capital gains or dividends.

Wednesday, October 8, 2008

Where to put our money?

One Singapore dollar to 1.02 Aussie dollars. This rate has never been seen for years!

Today I quickly sms my friends and asked them if they would like to go Australia in Dec, in time for their summer farm stay. Of course, the rates were the highlights. After I sold my Aussie dollars at $1.29 last year, Aussie has been coming down especially after the recent 100bps rate cut.

The fall in commodities prices and unwinding of YEN carry trade has brought down major currencies and indices to their multiyear lows.

Indeed, nothing is safe other than gold these days. Putting our money in Singapore dollars deposit will yield nothing more than 1.8% even if you are depositing a million dollars in UOB million dollar deposit promotion.

Of course, the personal banker might sell you something that yields more, but at current market and prevalent fear, no one would dare take it.

Most would rather suffer a real loss of 5% after adjusting for inflation.

Mr. Oei Hong Leong estimated that market would go down even more, as it is the end of the beginning. He recently made headlines buying AIG at rock bottom and selling for a $7 million dollars profit, before donating it.

Fear is clearly prevalent in the market, everybody is anticipating the market to go down further. However, today, I bought 5 lots of STI ETF (CPF) when STI nearly reach 2000 points. Although 90% of the investors are probably selling, I do know that like all crises, this one will eventually be resolved and the bull run will resume.

Human greed is never ending, there will be more market run up and crashes to come.

Singapore Blue Chips

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About Me

I am an ordinary Singaporean guy in my early thirties who is passionate about investing since 2003.
I live in a 4 room HDB flat and like many Singaporeans, dream of becoming a millionaire.
Currently I am an ordinary worker and have just completed my Masters. I aspire to build up a portfolio of 1 million dollars and derive a yearly recurring dividend income of 6% by 35.
The only way to achieve this aim is to work hard and invest prudently.
I invest in a variety of instruments such as unit trusts, stocks, REITS and foreign currencies mainly Australian dollars options.